Iraq launches ‘Carbon Economics Company’ to combat rising carbon emissions through utilising carbon credits as a means to finance its energy infrastructure.
It targets to control detrimental effects of gas flaring at oil fields and looking to new alternative sources of funding.
China’s EBS Petroleum will oversee the first project of this nature at the East Baghdad cluster of oil fields. The initiative entails the development of new gas processing facilities, capable of handling up to 12 million standard cubic feet per day (scf/d) of associated gas, which is released alongside crude oil.
Carbon credits hold the key to Iraq’s aspirations to alleviate its status as the world’s second-worst gas flaring nation, following Russia. Iraq flared an astounding 17.9 billion cubic meters of gas in 2022. This act alone accounted for the country’s second-largest contribution to carbon emissions after oil. By capitalizing on carbon credits, Iraq can not only mitigate the adverse environmental impacts of gas flaring but also drive positive change in the global fight against climate change.
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